Question : 189.The following facts pertain to Rojas Corporation: Retained Earnings balance, December : 1244214

 

189.The following facts pertain to Rojas Corporation:

 

Retained Earnings balance, December 31, 20×7

$550,000

Cash dividends declared and paid in 20×8

60,000

Cash dividends declared but not paid in 20×8

20,000

Retained Earnings balance reported on December 31, 20×8, balance sheet

675,000

 

On the basis of these facts, compute the amount of net income (loss) for Rojas Corporation for 20×8.

 

 

190.On August 26, 20×8, Booth Corporation’s board of directors declared a 2 percent stock dividend applicable to the outstanding shares of its $5 par value common stock, of which 150,000 shares are authorized, 130,000 are issued, and 10,000 are held in the treasury. The stock dividend was distributable on September 25 to stockholders of record on September 10. On August 26, the market value of the common stock was $12 per share. On November 26, the board of directors declared a $0.20 per share cash dividend. No other stock transactions have occurred. Record the transactions on August 26, September 10, September 25, and November 26. Make the December 31 entry to close Dividends and Stock Dividends to Retained Earnings.

 

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191.a. Elton Corporation has 6,000 shares of $100 par value, 8 percent cumulative preferred stock and 10,000 shares of $50 par value common stock outstanding. All shares were issued at par value. In addition, retained earnings total $198,000. If the preferred stock is callable at $105 per share and one year’s dividends are in arrears, compute book value per share of preferred stock.

 

b. Assume the same facts as in “a” above. Calculate book value per share of common stock.

 

c. Assume the same facts as in “a” above and that Elton Corporation declares a 15 percent stock dividend on its common stock. If the market value on the declaration date was $60 per share, for what amount will Additional Paid-in Capital, Common be credited?

 

d. Assume the same facts as in “a” above and that Elton Corporation declares a 4-for-1 stock split on its preferred stock. After the split, total par value of preferred stock equals what amount?